Lease vs Buy Calculator

Compare the true cost of leasing a car versus financing and keeping it, buying nets out the equity you build, so you see which is cheaper over the lease term.

Lease

Buy & finance

Cheaper option

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Total cost to lease-
Net cost to buy-
Equity when you buy-
Loan still owed at lease-end-

Show the math

Both options are measured over the same window, the lease term:

lease = signing + monthly × term + disposition

buy = down + payments − (resale − loan still owed)

Leasing leaves you with nothing at the end. Buying leaves you owning the car, so its resale value minus any remaining loan balance is equity that offsets your cost. Only the payments made within the lease window are counted, so a longer loan is compared fairly.

What this does

A lease vs buy calculator compares the true cost of leasing a car against financing and keeping it. Buying nets out the equity you build, so you can see which option is cheaper over the lease term.

How to use it

  1. Enter the lease terms: due at signing, monthly payment, and length.
  2. Enter the purchase price, down payment, rate, and term.
  3. Add the car’s expected resale value at the end of the lease window.
  4. Read the net cost of each option.

How it works

Both are measured over the lease window. Leasing cost is your due-at-signing plus monthly payments plus any disposition fee. Buying cost is your down payment plus payments made in that window, minus the equity you hold (resale value less any loan still owed).

Understanding your result

Resale value drives the decision: buying leaves you an asset, while leasing leaves nothing to sell. A higher resale value lowers the net cost of buying.

Example

With the default inputs, leasing a $35,000 car at $400 a month for 36 months with $2,000 due at signing and a $350 disposition fee costs $16,750. Buying with $3,000 down at 6% over 60 months means about $22,271 in payments over those 36 months, but a $20,000 resale value minus the $13,959 still owed leaves $6,041 of equity, a net cost of about $19,230, so leasing is about $2,480 cheaper. At a $24,000 resale value, buying comes out about $1,520 ahead.

Sources & methodology

Last updated .

Frequently asked questions

How are lease and buy compared fairly?

Both are measured over the same window, the lease term. Leasing cost is your due-at-signing amount plus monthly payments plus any disposition fee. Buying cost is your down payment plus the payments made during that window, minus the equity you hold (the car’s resale value less any loan still owed).

Why does resale value matter so much?

When you buy, you own an asset at the end. A higher resale value means more equity, which lowers the net cost of buying. Leasing leaves you with nothing to sell.

What if my loan is longer than the lease?

The tool counts only the payments you make within the lease window and subtracts the loan balance still outstanding at that point, so a longer loan is compared fairly.

Is my data stored?

No. Everything is computed locally in your browser.